AAR CORP (AIR) Stock Fundamental Analysis
USA - NYSE:AIR - US0003611052 - Common Stock
75.4593 USD
-0.47 (-0.62%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 69 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
In the past 5 years AIR has always been profitable.
AIR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.43%, AIR perfoms like the industry average, outperforming 42.03% of the companies in the same industry.
AIR has a Return On Equity (1.02%) which is in line with its industry peers.
The Return On Invested Capital of AIR (8.72%) is better than 76.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.29%.
The 3 year average ROIC (7.36%) for AIR is below the current ROIC(8.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 1.02% | ||
| ROIC | 8.72% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
Looking at the Profit Margin, with a value of 0.44%, AIR is in line with its industry, outperforming 43.48% of the companies in the same industry.
In the last couple of years the Profit Margin of AIR has grown nicely.
With a Operating Margin value of 9.09%, AIR perfoms like the industry average, outperforming 57.97% of the companies in the same industry.
In the last couple of years the Operating Margin of AIR has grown nicely.
With a Gross Margin value of 18.98%, AIR is not doing good in the industry: 68.12% of the companies in the same industry are doing better.
AIR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | 0.44% | ||
| GM | 18.98% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AIR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AIR has more shares outstanding
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
AIR has an Altman-Z score of 3.15. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AIR (3.15) is comparable to the rest of the industry.
AIR has a debt to FCF ratio of 691.43. This is a negative value and a sign of low solvency as AIR would need 691.43 years to pay back of all of its debts.
With a Debt to FCF ratio value of 691.43, AIR perfoms like the industry average, outperforming 44.93% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that AIR is somewhat dependend on debt financing.
AIR has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: AIR underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 691.43 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.88
WACC9.91%
2.3 Liquidity
AIR has a Current Ratio of 2.72. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
AIR has a Current ratio of 2.72. This is comparable to the rest of the industry: AIR outperforms 59.42% of its industry peers.
A Quick Ratio of 1.26 indicates that AIR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, AIR is in line with its industry, outperforming 42.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.47% over the past year.
AIR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.75% yearly.
Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 19.91% in the last year.
Measured over the past years, AIR shows a small growth in Revenue. The Revenue has been growing by 6.06% on average per year.
EPS 1Y (TTM)17.47%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.82%
Revenue 1Y (TTM)19.91%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%14.93%
3.2 Future
AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.98% yearly.
AIR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y15.5%
EPS Next 2Y13.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.26%
Revenue Next 2Y6.44%
Revenue Next 3Y-1.47%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.35 indicates a rather expensive valuation of AIR.
Based on the Price/Earnings ratio, AIR is valued cheaper than 92.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. AIR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.75, the valuation of AIR can be described as correct.
Based on the Price/Forward Earnings ratio, AIR is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (22.88), we can say AIR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
94.20% of the companies in the same industry are more expensive than AIR, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1938.23 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 13.98% in the coming years.
PEG (NY)1.25
PEG (5Y)1.52
EPS Next 2Y13.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for AIR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AIR (9/19/2025, 11:35:54 AM)
75.4593
-0.47 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners99.5%
Inst Owner Change-1.42%
Ins Owners2.73%
Ins Owner Change0.67%
Market Cap2.71B
Analysts81.82
Price Target84.74 (12.3%)
Short Float %2.66%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.92%
Min EPS beat(2)1.68%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)6.08%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.72%
EPS beat(12)12
Avg EPS beat(12)4.59%
EPS beat(16)15
Avg EPS beat(16)4.56%
Revenue beat(2)1
Avg Revenue beat(2)1.72%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)2.19%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.25%
Revenue beat(12)7
Avg Revenue beat(12)1.39%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)-0.7%
PT rev (3m)6.97%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 16.75 | ||
| P/S | 0.98 | ||
| P/FCF | 1938.23 | ||
| P/OCF | 75.17 | ||
| P/B | 2.24 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)3.9
EY5.17%
EPS(NY)4.5
Fwd EY5.97%
FCF(TTM)0.04
FCFY0.05%
OCF(TTM)1
OCFY1.33%
SpS77.32
BVpS33.69
TBVpS12.83
PEG (NY)1.25
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 1.02% | ||
| ROCE | 11.04% | ||
| ROIC | 8.72% | ||
| ROICexc | 9.11% | ||
| ROICexgc | 13.84% | ||
| OM | 9.09% | ||
| PM (TTM) | 0.44% | ||
| GM | 18.98% | ||
| FCFM | 0.05% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexcg growth 3Y18.86%
ROICexcg growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 691.43 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 62.86% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 3.4 | ||
| Cash Conversion | 11.72% | ||
| Profit Quality | 11.38% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.15 |
F-Score6
WACC9.91%
ROIC/WACC0.88
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.47%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.82%
EPS Next Y15.5%
EPS Next 2Y13.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.91%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%14.93%
Revenue Next Year6.26%
Revenue Next 2Y6.44%
Revenue Next 3Y-1.47%
Revenue Next 5Y1.07%
EBIT growth 1Y76.29%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year37.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-89.93%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y-17.2%
OCF growth 3Y-21.7%
OCF growth 5YN/A